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ECJ rules against sex-specific transfer factors for credited service

The European Court of Justice (ECJ) has ruled that using sex-specific factors to calculate additional pensionable service for scheme transfers-in is discriminatory.

The ECJ's decision followed a challenge by Austrian employee Ms Lindorfer who claimed that calculation procedures which took account of a woman's longer life expectancy were not necessary to ensure the financial health of the scheme.

In 'Lindorfer v Council', Ms Lindorfer argued the fact neither member contributions nor the age required to obtain a pension were determined by reference to sex, proved her point.

The ECJ found in her favour and ruled the use of sex-specific factors in calculating pensionable service to be credited in lieu of the transfer value in was not justified.